Monthly Archives: September 2011

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1897 – BIRTH OF GRAHAM TOWERS, GOVERNOR OF THE CENTRAL BANK OF CANADA, 1934-1955 In testimony in 1939 before a Standing Committee on Banking and Commerce of the Canadian Parliament when asked whether banks create money, he stated,“That is right. That is what they are for… That is the Banking business, just in the same way that a steel plant makes steel…The manufacturing process consists of making a pen-and-ink or typewriter entry on a card in a book. That is all…Each and every time a bank makes a loan (or purchases securities), new bank credit is created — new deposits — brand new money…As loans are debts, then under the present system all money is debt.”

2008 – STOCK MARKET CRASHThe Dow Jones plummeted by 778 points, its largest one-day drop in the history of the New York Stock Exchange. The crash was caused by the elimination on controls of the financial sector and was the logical consequence of allowing the financial industry to control our monetary system.

OCTOBER 1

1936 – DEATH OF LOUIS MCFADDEN (R- PA), CHAIRMAN OF THE US HOUSE BANKING AND CURRENCY COMMITTEE“We have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve Banks. Some people think the Federal Reserve Banks are U.S. government institutions. They are private credit monopolies; domestic swindlers, rich and predatory money lenders which prey upon the poeple the United States for the benefit of themselves and their foreign customers…The truth is the Federal Reserve Board has usurped the Government of the United States by the arrogant credit monopoly which operates the Federal Reserve Board.”

OCTOBER 2

1869 – BIRTH OF MOHANDAS GANDHI ‘Earth provides enough to satisfy every man’s need, but not every man’s greed.”“A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.”

———————Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com For more information, visit http://www.afsc.net/economiccrisis.html

Since corporations aren’t creating enough jobs to address our chronic unemployment crisis, the public sector must fill the void. A major impediment to funding any federal jobs program, however, is that the cost would add to the ever-rising federal debt.

A congressional bill, the National Emergency Employment Defense (NEED) Act, was just introduced that would spend US created money into circulation to exclusively fund the repair of our crumbling infrastructure and education systems. Seven million US jobs would be created.

Why borrow money from banks (which create money as debt) that need to be repaid with interest when We the People can create money interest-free, as stipulated in Art 1, Sec 8 of the Constitution?

The NEED Act, introduced by Rep. Dennis Kucinich, wouldn’t be inflationary since the amount of created US money would match the amount of created physical wealth.

The NEED Act would also end the bank practice of creating money as debt via loans (to both individuals and the government) and loaning money many times in excess of their reserves.

Thank Rep. Kucinich for his sponsorship of this urgent bill and encourage every other area US Representative and Ohio Senators Brown and Portman to support it.

Speaking and willing to SpeakDavid Cobb, one of the major leaders of the national Move to Amend, will be a keynote speaker at the Midwest Power Shift conference in Cleveland, October 21-23.

Midwest Power Shift will bring together thousands of young people together to promote climate justice.http://midwest.wearepowershift.org/Cobb will speak at the conference on Friday night, October 21 and co-lead a workshop on Saturday, October 22 on ending corporate rule and Move to Amend.

He is available to speak afterwards around the area/state (preferably in locations in Northern Ohio) on:Saturday night, October 22Sunday morning (a lay church sermon), October 23Sunday afternoon, October 23Sunday evening, October 23

“Whosoever controls the volume of money in any country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.” A few weeks after making this statement, Garfield was shot. He died two months later.

SEPTEMBER 21

1950 –FEDERAL DEPOSIT INSURANCE LIMIT RAISED

The popular FDIC (Federal Deposit Insurance Corporation) limit is raised by Congress to $10,000. The FDIC insures commercial bank deposits against loss due to bankruptcy or default. It was created following the Great Depression when depositors lost their savings when banks collapsed due to speculative investments and/or depositor fears which led to a run on banks.

SEPTEMBER 22

1956 — DEATH OF FREDERICK SODDY, NOBEL LAUREATE

“It was recognized in Athens and Sparta…centuries before the birth of Christ that one of the most vital prerogatives of the State was the right to issue money.”

On money: “To allow it to become a source of revenue to private issuers is to create first, a secret and illicit arm of the government and last, a rival power strong enough ultimately to overthrow all other forms of government.”

SEPTEMBER 23

1998 – TALK BY MICHAEL CHOSSUDOVSKY, PROFESSOR OF ECONOMICS

Monetary policy is in the hands of private creditors who have the ability to freeze state budgets, paralyze the payments process, thwart the regular disbursement of wages to millions of workers and precipitate the collapse of production and social programs.

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.comFor more information, visit http://www.afsc.net/economiccrisis.html

1857 – STEAMSHIP CENTRAL AMERICA SINKSThe steamship had a million dollars in gold and silver onboard. It caused the Ohio Life and Trust Company to fail and sparked the Financial Panic of 1857 since money was backed by gold. Under such a metal-based money system, the less gold and silver, the fewer dollars in circulation. The fewer dollars, the less economic transactions occur, resulting in less production and more unemployment.

SEPTEMBER 13

1785 – PENNSYLVANIA REPEALS THE CHARTER OF THE BANK OF NORTH AMERICA This was the nation’s first private commercial bank, chartered by Congress under the Articles of Confederation. The Articles gave Congress the power to “emit bills of credit” — to create money. By a single vote, Congress voted to transfer their authority to issue money to the Bank, thus, become a quasi central bank. The Pennsylvania legislature repealed the Bank’s charter, which was significant since it primarily operated in just three states. Why did Congress willingly give up their money power in the first place? The public argument was that the business of finance could not be ably conduced by a public body (Congress) — only by a small number of private financiers.

1873 – NATION’S BIGGEST BANK, JAY COOKE & COMPANY, BECOMES EFFECTIVELY INSOLVENTCongress has passed the Coinage Act earlier in the year, which ended the minting of silver dollars. US money system was, thus, backed only by gold. The effect was similar to other instances in US history when money was backed by gold — a depression ensued, prices feel, unemployment increased and major banks failed as there wasn’t enough gold to back the money needed to fuel the growing economy. Jay Cooke & Company was the largest bank to fail due to this policy of gold-backed money.

SEPTEMBER 16

2003 – STATEMENT MADE ON THIS DAY BY HENRY C.K. LIU, PROFESSOR OF ECONOMICSThe current monetary system is a cruel hoax. There is virtually no “real” money in the system, only debts. Except for coins, which are issued by the government and make up only about one-thousandth of the money supply, the entire U.S. money supply now consists of debt to private banks, for money they created with accounting entries on their books.

2008 – FEDERAL RESERVE BAILS OUT AMERICAN INTERNATIONAL GROUP (AIG)AIG was the largest insurance corporation, which had speculated in risky home mortgages. The Fed issued AIG $85 billion in credit in September 2008 to meet their financial obligations

SEPTEMBER 17

1787 – CONSTITUTION DAY The Congress shall have power to…coin money [and] regulate the power thereof — Article 1, Section 8, US Constitution

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Why this calendar? Many people have questions about the root causes of our economic problems. Some questions involve money, banks and debt. How is money created? Why do banks control its quantity? How has the money system been used to liberate (not often) and oppress (most often) us? And how can the money system be “democratized” to rebuild our economy and society, create jobs and reduce debt?Our goal is to inform, intrigue and inspire through bite size weekly postings listing important events and quotes from prominent individuals (both past and present) on money, banking and how the money system can help people and the planet. We hope the sharing of bits of buried history will illuminate monetary and banking issues and empower you with others to create real economic and political justice.This calendar is a project of the Northeast Ohio American Friends Service Committee. Adele Looney, Phyllis Titus, Donna Schall, Leah Davis, Alice Francini and Greg Coleridge helped in its development.Please forward this to others and encourage them to subscribe. To subscribe/unsubscribe or to comment on any entry, contact monetarycalendar@yahoo.com For more information, visit http://www.afsc.net/economiccrisis.html